1. Subawards and Subrecipient Monitoring
March 25, 2015

2. This session will focus on
The life-cycle of a subaward
Understanding roles and responsibilities
Institutional approaches to subrecipient monitoring
Providing an understanding of the new requirements under OMB Uniform Guidance 2 CFR Part as well as resources

3. Presenters/Panelists
Adrienne Bonilla, Esq., Assistant Vice President for Research – University at Albany
Sharon Levine-Sealy, Pre-Award Director – Downstate Medical University
Betsy Colón, Grants Management Associate – SUNY Geneseo

4. Presenters/Panelists (cont.)
Justine Gordon, Director - Office of Grants & Contracts Administration
Donna Kiley, Associate Director - Office of Grants & Contracts Administration
Lisa LeBlanc, Associate Director - Internal Audit

5. Subrecipient Policy Reason for Policy Statement of Policy
The Research Foundation is responsible for monitoring the programmatic and financial activities of its subrecipients in order to ensure proper stewardship of sponsored funds. This policy addresses those responsibilities to ensure that both The Research Foundation as prime awardee and subrecipients are in compliance with applicable laws, regulations and with the provisions of the prime award.
Statement of Policy
The Research Foundation must comply with any prime award’s specific requirements for issuance of subawards. All of the terms and conditions applicable to the subaward must be flowed down to the subrecipient. This Subrecipient Policy applies to all subawards issued under sponsored programs made by The Research Foundation, without regard to the primary source of funding.

6. Subrecipient Policy (cont.)
Additional Federal Requirements
2 CFR Part 200 places certain additional requirements for monitoring and managing subrecipient activities on federally-funded awards. In order to ensure that the Research Foundation is in compliance with federal regulations, the requirements at 2 CFR shall apply to subrecipient arrangements funded with federal funds. A toolkit has been developed to assist in determination, risk assessment and periodic monitoring of subrecipients.

7. The Life Cycle of a Subaward
Proposal Stage (development and submission)
Award Issuance Stage
Award Period Stage
Close-out Stage

8. 5 Step Toolkit Subrecipient Monitoring and Management
The Research Foundation must comply with any prime award’s specific requirements for issuance of subawards.
All of the terms and conditions applicable to the subaward must be flowed down to the subrecipient.
The 5 step toolkit was developed to assist in determination, risk assessment and periodic monitoring of subrecipients.
These steps are required for federal awards and are considered best practice for all others.

9. The Life Cycle of a Subaward
Proposal Stage (development and submission)
Award Issuance Stage
Award Period Stage
Close-out Stage

10. Subrecipient and Contractor Determination 200.330
Toolkit - Step 1 Subrecipient/Contractor Determination
RF Subrecipient vs. Contractor Decision Tree
Federal agencies may supply and require specific support for determinations
Could create a significant documentation burden
Could result in unintended agency influence on determinations

11. Subrecipient and Contractor Determination 200.330 (cont.)
Pass-through entities must make determinations
“Contractor” has replaced “vendor”
Characteristics of a subrecipient and of a contractor (formerly vendor) have not changed
Subrecipient:
Has performance measured against the objectives of the Federal program
Has responsibility for making programmatic decisions
Has responsibility for adherence to Federal program compliance requirements
Uses Federal funds to carry out a program of the organization, not to provide goods or services for a program of the pass-through entity
Determines who is eligible to receive Federal financial assistance
Contractor:
Provides the goods or services within normal business operations
Provides similar goods or services to many different purchasers
Operates in a competitive environment
Provides goods or services that are ancillary to the operation of the Federal program
Is not subject to compliance requirements of the Federal program

13. Proposal Stage (development and submission)
PI/Department/OSP: Subrecipient Proposal
Statement of Work - describes the work the subrecipient investigators will perform in the project
Proposed Budget & Justification
Other items required by sponsor- biosketches, facilities, assurances, small business subcontracting plan, etc.
Subrecipient Institutional Approval
Risk Assessment Questionnaire
Reminder: Sponsor Guidelines that apply to Prime, also apply to Subrecipient

14. Toolkit - Step 2 RF Subrecipient Risk Assessment Questionnaire

15. Toolkit - Step 3 RF Subrecipient Risk Analysis
Review Risk Assessment Results to:
Determine financial adequacy of the subrecipient
Confirm satisfactory evidence of F&A rate(s)
Verify subrecipient is not debarred or suspended
Verify all necessary approvals have been received
Agency prior approvals (contracts)
Agency review of agreement, as required
Ensure all compliance approvals have been obtained
Make high, medium or low-risk determination

17. The Life Cycle of a Subaward
Proposal Stage (development and submission)
Award Issuance Stage
Award Period Stage
Close-out Stage

18. Award Issuance Stage
A legal agreement between a prime recipient and a third party (subrecipient) to provide a specified portion of the work required in the prime contract or grant.
Sets forth:
work to be performed or expected deliverables
compensation
period of performance
terms and conditions, including flow-downs from Prime Award
AKA: Subcontract, Subgrant, Subagreement, Subrecipient Agreement, or Consortium Agreement a Sub!

19. Award Issuance Stage (cont.).
Determine necessary risk mitigation following risk analysis
Prepare subaward in accordance with requirements of the prime award and risk assessment
FDP Template or Model Agreement
Special award terms and conditions
Intercampus letter agreement
If sponsor approval required, copy submitted for review
During approval or subrecipient acceptance process, changes may need to be negotiated or clarifications included in subaward

20. Award Issuance Stage (cont.).
More prescriptive Post-Award requirements(2 CFR§ )
Add a lengthy list of elements to the subaward terms
Establish a monitoring plan for the subrecipient and enforcement action against noncompliant subrecipients
Financial review
Programmatic review
Must use subrecipient’s negotiated F&A rate or provide a 10% MTDC “de minimis” rate (or another negotiated rate with the subrecipient)
Fixed amount subawards require written prior approval from the federal agency.
(2 CFR Part )
Federal and Pass-Through Entity Requirements
Defined Audit Requirements & Access
Closeout Terms & Conditions

21. The Life Cycle of a Subaward
Proposal Stage (development and submission)
Award Issuance Stage
Award Period Stage
Close-out Stage

22. Award Period Stage Toolkit - Step 4 Monitoring
Subaward Monitoring
Review financial and programmatic reports § (d)(1)
Follow up and ensuring that timely action on all deficiencies are taken § (d)(2)
Issue a management decision for audit findings § (d)(2)
Modifications
SOW changes
Re-budgeting

23. Award Period Stage (cont.) Monitoring
Principal Investigator Responsibility
Identify content for subawarding programmatic activity (SOW, Budgets)
Ensure subrecipients comply with the technical and reporting provisions of the subaward
Approve and sign all subrecipient invoices
Document unsatisfactory performance by the subrecipient
Determine when a subaward is to be amended. Common reasons for amending are:
Additional funding
Extending the period of performance
Modifying the reporting schedule

25. Award Period Stage (cont.) Monitoring
Research Administrators Responsibility
Ensure compliance for subrecipient monitoring
Review subaward invoices and collect PI signature prior to processing for payment
Assist PI in monitoring responsibilities and maintaining supporting documentation of costs and deliverables
Review and sign off on invoices from subrecipients for adherence to budget guidelines
Seek clarification or support from subrecipient for any unusual, miscellaneous, seemingly excessive or other charges invoiced by the subrecipient
Assist with modifications and timely closeout of subawards

27. Requirements for Pass-through Entities 200.331 (cont.)
All pass-through entities must…
Toolkit - Step 5 (Enforcement)
Consider taking enforcement action against noncompliant subrecipients § (h)

29. The Life Cycle of a Subaward
Proposal Stage (development and submission)
Award Issuance Stage
Award Period Stage
Close-out Stage

30. Close-out Stage
Meet with PI to ascertain successful project completion by subrecipient
Verify receipt of all technical and financial reports
Verify receipt and accuracy of invoice marked “FINAL”

31. Internal Audit Testing
No substantial changes resulting from Uniform Guidance
Verify initial risk assessment performed
Verify sub-recipient agreement contains appropriate language
Verify evidence of sub-recipient performance monitoring checklist
Verify allowability and accuracy of sub-recipient invoices and attached certification by the sub-recipient

32. What do you do on your campus?
Best Practices
What do you do on your campus?

33. Resources Public webpage on the Research Foundation’s website:
Subrecipient Monitoring and Management
Includes PDF and Word documents from the 5 step toolkit

34. Questions